Williams to acquire MountainWest from Southwest Gas for $1.5B

Williams (WMB) announced that it has reached an agreement to acquire MountainWest from Southwest Gas (SWX), in a transaction including $1.07B of cash and $0.43B of assumed debt, for an enterprise value of $1.5B. MountainWest comprises roughly 2,000-miles of interstate natural gas pipeline systems primarily located across Utah, Wyoming and Colorado, totaling approximately 8 Bcf/d of transmission capacity. MountainWest also holds 56 Bcf of total storage capacity, including the Clay Basin underground storage reservoir, providing valuable service to western markets. The acquisition price represents an approximate 8x estimated 2023 EBITDA multiple. The transaction is expected to close in 2023, following satisfaction of customary closing conditions, including regulatory approvals and the expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.